Robert Reeves says builder isn't meeting administrative expenses.

A TH Properties real estate adviser has called for the home builder's Chapter 11 bankruptcy cases to be converted to Chapter 7, a move that would lead to the company's liquidation if approved by a judge.

Robert C. Reeves Jr. of Houston filed court papers in U.S. Bankruptcy Court in Philadelphia on Friday, saying he does not foresee the company being able to file a viable reorganization plan under its Chapter 11 bankruptcy status.

If a judge were to approve the request, it would foil the company's plans to remain in business.

It was the third Chapter 7 conversion request filed in the case in the past three months. It's been nearly 23 months since the Harleysville, Montgomery County, builder filed for Chapter 11 bankruptcy protection, leaving many homeowners with unfinished or unbuilt homes, including some in the Lehigh Valley. The company has resumed work on homes at some of its properties.

"This court should convert the bankruptcy cases because of their continuing losses and the absence [of] a reasonable likelihood of rehabilitation, the inability of THP to effectuate a [reorganization] plan and the unreasonable delays which have been prejudicial to creditors," wrote Reeves, who became an adviser to the company in December 2008.

Reeves pointed out in court records that TH Properties had racked up $2.6 million in administrative expenses by the end of 2010 and "yet those providing these services received payment of approximately $385,000."

He added that "if consensus with creditors cannot be reached in 23 months [after the initial bankruptcy filing], it likely cannot be reached at all."

It was the third Chapter 7 motion filed in the case since December. U.S. Trustee Roberta A. DeAngelis on Feb. 28 filed a similar motion to convert to Chapter 7, but withdrew that motion a day later, according to court records.

In December, TH Properties lender Wilmington Trust requested that the case be converted. The bank, which provided financing for THP's Village at Wynstone property in New Hanover Township, Montgomery County, eventually reached a settlement under which THP agreed to dismiss that particular property from the bankruptcy case.

TH Properties co-founder Todd Hendricks said in December that his company will reorganize and has no plans of going out of business. The company has received a number of extensions for its exclusivity period, during which it can exclusively file a revised reorganization plan. Hendricks has not said when that plan would be filed.